The Packer family has appointed its television and magazine head, John Alexander, as chief lieutenant of its $8.5 billion Publishing and Broadcasting Ltd after the sudden departure of managing director and chief executive Peter Yates.

Mr Yates said yesterday he had decided to forgo the remaining two years of his five-year contract "for personal reasons" and would vacate his post immediately for Mr Alexander, the head of PBL Media and its magazine division, Australian Consolidated Press.

The announcement surprised the market, chiefly because PBL is in a stalemate with Burswood over a $686 million bid for the Perth casino operator.

However, that didn't stop PBL shares from racing 7¢ ahead to a three-year high of $12.54.

A PBL source strongly denied Mr Yates had been pushed, suggesting the former investment banker had discussed his future with the company several times in the past few months.

However, it is believed that Kerry Packer and PBL executive chairman James Packer chose the timing of the transition themselves and that Mr Yates was only made aware of their decision on Tuesday.

In a rare public statement yesterday, Kerry Packer said: "I would like to thank Peter for his leadership. We are sure Peter will continue to make a significant contribution to corporate Australia and we wish him well."

James Packer said Mr Yates' three-year tenure had left PBL in much better shape.

"He has brought the PBL group businesses together, which has allowed us to capitalise on the scale of the company," he said.

In other changes to the board, Mr Packer snr was elevated from his non-executive role to the deputy chairman's seat. The empty directorship will be filled by Chris Anderson, who resigned as chief executive of Optus last month.

Mr Alexander - a former editor-in-chief at The Sydney Morning Herald and The Australian Financial Review - will remain in charge at ACP, though David Gardiner will be elevated to deputy chief executive.

However, Mr Alexander will step aside as top dog at Channel Nine, making way for his understudy, David Gyngell.

"It is a great honour to be offered this exciting opportunity to develop further Australia's best collection of media and entertainment assets," Mr Alexander said.

Analysts agreed that the changes had more to do with PBL focusing on the direction of its media businesses, an area in which Mr Alexander had performed well since his arrival at ACP in 1998.

"John Alexander is probably the best media manager in Australia at the moment," said CCZ Equities analyst Roger Colman. "Mr Yates' work was done. This just represents the fact that Kerry Packer had an employee that he didn't need."

Mr Colman said the reshuffle also ensured that rival John Fairfax Holdings - owner of The Age - didn't get its hands on two of the most highly regarded media operators in the country in Mr Alexander and Mr Anderson.

Fairfax is on the hunt for a new chief executive following last month's announcement that Fred Hilmer would step down some time next year.

When asked about the now-available Mr Yates, Fairfax chairman Dean Wills was coy: "The process started once we made the announcement about Fred Hilmer. It will involve anybody that might be a prospect."